Precigen (PGEN) AI Stock Analysis

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Precigen

(NASDAQ:PGEN)

50Neutral

Precigen's stock score is impacted by significant financial challenges, including declining revenues and cash flow issues. However, positive technical trends, promising earnings call developments, and strategic financing efforts provide a counterbalance, suggesting potential longer-term opportunities.

Positive Factors

Market Potential

Commercial launch preparations for PRGN-2012 have been ongoing, indicating strong confidence in the product's market potential.

Regulatory Approval

The probability of U.S. approval for PRGN-2012 has been increased from 75% to 90%, reflecting higher confidence in receiving approval.

Therapeutic Impact

PRGN-2012 is viewed as a paradigm-changing therapy for a patient population whose only current treatment option is a high surgery burden.

Negative Factors

Financial Performance

For FY24, Precigen reported total revenue of $3.9M and a net loss of $0.47 per share, compared to the consensus estimated revenue of $4.1M and a net loss of $0.46 per share.

Precigen (PGEN) vs. S&P 500 (SPY)

Market Cap

$408.72M

Dividend YieldN/A

Average Volume (3M)1.38M

Price to Earnings (P/E)―

Beta (1Y)2.24

Revenue Growth-36.95%

EPS Growth-22.68%

CountryUS

Employees143

SectorHealthcare

Sector Strength66

IndustryBiotechnology

Share Statistics

EPS (TTM)-0.48

Shares Outstanding294,042,970

10 Day Avg. Volume1,565,741

30 Day Avg. Volume1,380,562

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)194.60

Price to Cash Flow (P/CF)-16.10

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$6.25

Price Target Upside349.64% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Precigen Business Overview & Revenue Model

Company DescriptionPrecigen, Inc. (PGEN) is a biotechnology company focused on the development of innovative gene and cell therapies. The company operates primarily in the healthcare sector, with a commitment to revolutionizing the treatment of serious diseases through its proprietary technology platforms. Precigen's core offerings include advanced therapeutic solutions across oncology, autoimmune disorders, and infectious diseases, leveraging synthetic biology to target complex medical conditions.

How the Company Makes MoneyPrecigen generates revenue through a combination of product sales, collaborative agreements, and strategic partnerships. The company's revenue model is primarily driven by the commercialization of its proprietary therapeutic candidates and the licensing of its technology platforms to other biotech and pharmaceutical companies. Key revenue streams include upfront payments, milestone payments, and royalties from partnerships and collaborations. Additionally, Precigen may enter into co-development agreements where costs and profits are shared, further contributing to its earnings. The company’s ability to innovate and successfully bring products to market is crucial to its financial performance.

Precigen Financial Statement Overview

Summary

Precigen faces significant financial challenges with declining revenues, persistent losses, and operational inefficiencies. The balance sheet shows reduced equity, and cash flow issues persist with negative free and operating cash flows.

Income Statement

Negative

Precigen's financials show a significant decline in revenue over recent years, with the 2024 revenue standing at $3.93 million, down from $103.87 million in 2021. The gross profit margin is 100% for 2024, but this is misleading due to a sharp drop in revenue. Net profit margins are negative, with a net loss of $126.24 million in 2024. The company has consistently reported negative EBIT and EBITDA, indicating ongoing operational challenges. The revenue growth rate from 2023 to 2024 is negative, further emphasizing the need for a strategic turnaround.

Balance Sheet

Negative

Precigen's balance sheet reflects financial stress. The debt-to-equity ratio improved to 0 in 2024 from 0.06 in 2023 due to debt reduction, but this is offset by a significant reduction in stockholders' equity, now at $17.86 million. The equity ratio has decreased to 26.11% in 2024, indicating weakened financial stability. Return on equity remains negative due to continued net losses, which is a critical concern for potential investors.

Cash Flow

Very Negative

The cash flow statement indicates negative operating cash flow of $68.17 million in 2024, showing no improvement from previous years. Free cash flow is also negative, implying ongoing cash burn. The operating cash flow to net income ratio and free cash flow to net income ratio both reflect operational inefficiencies. The absence of investing and financing cash flows in 2024 further highlights the company's constrained financial flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.92M	6.22M	26.91M	103.87M	103.18M
	Gross Profit
3.92M	106.00K	20.57M	45.49M	47.66M
	EBIT
-135.03M	-88.92M	-74.61M	-78.78M	-85.68M
	EBITDA
-123.50M	-89.23M	-66.00M	-84.07M	-70.41M
	Net Income Common Stockholders
-126.23M	-95.90M	-79.78M	-96.77M	-103.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.91M	62.85M	55.95M	115.16M	100.12M
	Total Assets
145.27M	151.04M	215.98M	359.86M	314.59M
	Total Debt
5.50M	7.10M	51.42M	194.20M	182.28M
	Net Debt
-24.02M	-481.00K	46.56M	151.28M	130.49M
	Total Liabilities
106.75M	32.55M	89.72M	252.51M	247.41M
	Stockholders Equity
17.86M	118.50M	126.26M	107.35M	67.17M
Cash Flow		Free Cash Flow
-68.17M	-68.47M	-69.97M	-63.02M	-84.55M
	Operating Cash Flow
-68.17M	-66.93M	-65.05M	-55.77M	-77.02M
	Investing Cash Flow
0.00	-3.09M	226.42M	-74.54M	27.78M
	Financing Cash Flow
110.58M	29.59M	-155.29M	121.19M	32.70M

Precigen Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.39

Price Trends

50DMA

1.67

Negative

100DMA

1.34

Positive

200DMA

1.23

Positive

Market Momentum

MACD

-0.08

Negative

RSI

44.92

Neutral

STOCH

76.32

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PGEN, the sentiment is Negative. The current price of 1.39 is below the 20-day moving average (MA) of 1.47, below the 50-day MA of 1.67, and above the 200-day MA of 1.23, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 76.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PGEN.

Precigen Risk Analysis

Precigen disclosed 61 risk factors in its most recent earnings report. Precigen reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Precigen Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.19B	3.13	-40.94%	2.95%	17.94%	2.00%
PGEN	50 Neutral	$408.72M	―	-136.30%	―	-36.95%	-22.68%
MGTX	46 Neutral	$426.61M	―	-143.48%	―	137.42%	-34.13%
RLAY	46 Neutral	$456.01M	―	-44.15%	―	-60.83%	14.13%
TYRA	39 Underperform	$473.56M	―	-31.60%	―	―	6.72%
SANA	36 Underperform	$371.29M	―	-99.17%	―	―	19.94%
MNMD	33 Underperform	$434.88M	―	-68.01%	―	―	26.24%

* Healthcare Sector Average

Performance Comparison

PGEN

Precigen

1.39

0.01

0.72%

MGTX

Meiragtx Holdings

5.41

0.39

7.77%

RLAY

Relay Therapeutics

2.69

-3.26

-54.79%

SANA

Sana Biotechnology

1.65

-6.28

-79.19%

MNMD

Mind Medicine

5.77

-2.91

-33.53%

TYRA

Tyra Bioscience

8.92

-6.58

-42.45%

Precigen Earnings Call Summary

Earnings Call Date: Mar 19, 2025 | % Change Since: -22.35% | Next Earnings Date: May 7, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong positive outlook, with significant progress in regulatory approval, commercial readiness, and promising clinical data for multiple programs. Despite an increased net loss and pending confirmatory trials, the positive developments and strategic readiness for PRGN-2012's launch overshadowed the lowlights.

Highlights

PRGN-2012 FDA Priority Review

PRGN-2012 received FDA priority review with a PDUFA date set for August 27, 2025, indicating a strong regulatory progress and potential market entry.

Significant Efficacy in PRGN-2012 Trials

PRGN-2012 demonstrated a 51% complete response rate, with responders remaining surgery-free for up to three years, showcasing significant efficacy and durability.

Manufacturing Readiness for PRGN-2012

The company has upgraded its GMP facility and completed process validations, ensuring readiness for the commercial launch of PRGN-2012.

Expansion of Commercial Team

Precigen completed the build-out of its commercial leadership team and partnered with EVERSANA to implement the US launch, indicating robust preparations for commercialization.

Increased Market Opportunity

Updated analysis suggests there are up to 27,000 adult RRP patients in the US, indicating a larger market opportunity than previously estimated.

Successful Fundraising

Precigen raised $79 million through a preferred stock issuance, strengthening its balance sheet and extending its financial runway into 2026.

Promising Developments in PRGN-2009 and UltraCAR-T

Phase 1 data for PRGN-2009 showed 30% objective responses in refractory patients, and UltraCAR-T platform developments indicate potential first-in-class treatments for AML and autoimmune diseases.

Lowlights

Increased Net Loss for 2024

The company reported a net loss of $126.2 million, an increase from $95.9 million in 2023, indicating rising expenses as the company prepares for commercialization.

Pending Confirmatory Trial Completion

The confirmatory trial for PRGN-2012 is still ongoing and is not expected to be completed by the PDUFA date, which could affect the timeline for final approval.

Company Guidance

During Precigen's Full Year 2024 Financial Results and Business Update Call, the company provided comprehensive guidance on various metrics surrounding their lead asset, PRGN-2012 for recurrent respiratory papillomatosis (RRP). The program has shown a 51% complete response rate in clinical trials, with a median durability of response at 24 months and all Phase 1 complete responders remaining surgery-free for three years. The FDA accepted their Biologics License Application (BLA) with a priority review and a PDUFA date set for August 27, 2025, without plans for an advisory committee meeting. Precigen reported a net loss of $126.2 million for 2024, compared to $95.9 million in 2023, and ended the year with $97.9 million in cash, cash equivalents, and investments. The company plans to target approximately 500 otolaryngologists in the U.S. with a sales force of 15-20 representatives in partnership with EVERSANA, anticipating commercial revenues beginning in the second half of 2025. The potential patient population in the U.S. is estimated at 27,000 adults, indicating a significant unmet need.

Precigen Corporate Events

Product-Related AnnouncementsPrivate Placements and Financing

Precigen Secures $79M Financing for 2025 Launch

Positive

Dec 30, 2024

Precigen has announced a private placement of $79.0 million through the sale of its 8.00% Series A Convertible Perpetual Preferred Stock and warrants to purchase common stock. The proceeds from this financing, which includes investments from Patient Capital Management and others, are expected to extend Precigen’s cash runway into 2026, supporting the anticipated commercial launch of PRGN-2012 in 2025.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.